Lower Your Cost & MOQs

Hey there, 👋

I keep hearing how collaborative the CPG community is. I'd like to put that to test.

You heard of "sharing is caring," but did you know sharing is also saving?

You can join forces with brands similar to yours to source ingredients or packaging components together and save some money.

Your copackers procurement team is already doing this...but you may not be seeing the financial benefits.

Here's how you'd do it:

Step 1: Play Detective 🔎

Your mission is to find other awesome brands like yours that need the same stuff you do. Maybe you're all in the organic sauce game and need mountains of tomatoes.

List these potential partners in your secret "Saving Squad" file.

Action: Scribble down at least 10 brands you’d love to collaborate with. Don't forget to jot down their ingredient or packaging needs.

Step 2: Make Friends 🤝

Next up, shoot them an email or DM with your idea. Something like, "Hey, let's join forces to conquer the world... or at least the world of organic tomatoes!"

Ok. Maybe something less cheesy. I'm horrible at cold emails.

Once they bite, draft an agreement that clearly outlines who does what, and how the savings will be split.

Action: Write a friendly email and a simple collaboration agreement. Set up a coffee chat to discuss it further.

Step 3: Assemble Your Team 🦸

Once everyone's on board, you'll need to form an all-star team from each brand. This group will coordinate all the magic that's about to happen.

Action: Pick your best and brightest to represent your brand. Set up a fun, recurring team meeting.

Step 4: Demand Democracy 🗳️

Now, let the team know how much of the shared ingredient or component you need each month. This way, the team can add up everyone's needs for a grand total.

Action: Share your monthly needs for the shared items with the team. They’ll do the math!

Step 5: Become a Negotiation Ninja 🥷

Your squad should now approach the suppliers with your combined order and negotiate the heck out of those prices. "10% discount for 10,000 tomatoes? Yes, please!"

Action: Let your team do the talking. They'll negotiate for better prices and terms.

Step 6: Order Up! 📦

With the hard part over, all that's left is to order and receive the goods. You can all high-five once the first shared order is a success.

Action: Place that shared order and get ready to welcome your goods. Your team will work out the delivery details.

Step 7: Keep Tabs 📝

Finally, keep an eye on how things are going. Is everyone saving money? Are the tomatoes top-notch? Share this feedback with the team and adjust if needed.

Action: Keep track of your savings and discuss the results in your team meetings. Adjustments? No problem! Your team's got this.

Congrats. If you execute this, you will have just formed your own mini group purchasing organization! You will have achieved a better cost and lower MOQs which means less cash on hand in inventory! 💪💰

So, what are some brands you think are open enough to consider this? Drop them in the comments!

By the way, Will Nitze and his team at IQBAR launched limited-edition electrolyte flavors - Passion Fruit and Piña Colada. Y'all should check it out!

Thank you,

Josh - Your CPG Supplier Insider